Louisiana 2012 Regular Session

Louisiana Senate Bill SB760 Latest Draft

Bill / Engrossed Version

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Regular Session, 2012
SENATE BILL NO. 760 (Substitute of Senate Bill No. 731 by Senator Allain)
BY SENATOR ALLAIN 
MINERALS.  Provides relative to qualified admission of responsibility for remediation of
oilfield sites and exploration and production sites.  (8/1/12)
AN ACT1
To enact R.S. 30:29.2, relative to remediation; to provide relative to remediation of oilfield2
sites and exploration and production sites; to provide for qualified admission of3
responsibility for environmental damage; to provide terms, conditions, procedures,4
requirements, definitions, and standards; to provide relative to duties and5
responsibilities of certain agency heads; to provide relative to certain actions or6
claims involving environmental damage; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1.  R.S. 30:29.2 is hereby enacted to read as follows: 9
ยง29.2. Qualified admission of responsibility for environmental damage10
A. Within one hundred and twenty days of being served with a claim11
under R.S. 30:29, any party may make a qualified admission of responsibility12
to fund the most feasible plan to evaluate or remediate all or a portion of the13
environmental damage to applicable regulatory standards.  This admission shall14
not be construed as an admission of liability for damages pursuant to R.S.15
30:29(H). After the initial admission under the provisions of this Section, an16
admission by any other party to the litigation under the provisions of this17 SB NO. 760
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Section shall be made within thirty days of the filing in the record of the first1
admission.2
B.  Within sixty days of a qualified admission of responsibility as to all3
or any portion of the environmental damage, and whether by one or more of the4
defendants, a party admitting responsibility shall file a plan of evaluation or5
remediation with the Department of Natural Resources, office of conservation,6
together with all facts and data necessary to support the plan. Any party may7
submit a plan, submittal or comment for consideration by the department. The8
department shall have sixty days after the filing of the plan of evaluation or9
remediation within which to approve the plan or structure a plan which the10
department determines to be the most feasible plan to evaluate or remediate the11
environmental damage to applicable regulatory standards. No plan for12
evaluation or remediation of environmental damage approved by the13
department shall include an exception from any existing regulations as to14
remediation of environmental media suitable for use in human consumption,15
the forestry industry, the fishing industry, the agriculture industry, the16
aquaculture industry, or coastal restoration, unless the exception has been17
approved by the commissioner of agriculture, the secretary of the Department18
of Natural Resources, the secretary of the Department of Wildlife and Fisheries,19
the secretary of the Department of Environmental Quality, the secretary of the20
Department of Health and Hospitals, and, if the environmental damage is21
within the coastal zone or impacts the master plan for coastal protection, the22
chairman of the Coastal Protection and Restoration Authority.23
C.  A qualified admission of responsibility, as provided for in this24
Section, for implementing the most feasible plan and the plan approved by the25
department shall be admissible as evidence in any action. The party admitting26
responsibility shall be required to deposit with the department sufficient funds27
to cover the cost of the department's review of the plans or submittals including28
the cost of holding a public hearing to approve or structure the feasible plan.29 SB NO. 760
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The initial payment of these costs shall be in the amount of one hundred1
thousand dollars. This initial payment shall be deposited prior to or along with2
the submission of the plan by the party admitting responsibility. Within thirty3
days of the department's filing of the plan, the party admitting responsibility for4
implementing the most feasible plan shall reimburse the plaintiff for those costs5
which the court determines to be recoverable under R.S. 30:29(E)(1). Nothing6
in this Section shall delay the prosecution or defense of the action, including the7
conducting of discovery and pretrial motion practice.8
D. Any party may subpoena, for purposes of deposition or trial, any9
employee, contractor or representative of the department involved in the10
formulation of the feasible plan approved by the department.11
E. The provisions of this Section shall not establish primary jurisdiction12
with the Department of Natural Resources.13
F. The definitions in R.S. 30:29 shall apply to the provisions of this14
Section.15
G.(1) Any party admitting responsibility under the provisions of this16
Section shall waive any and all legal or contractual rights to indemnity or17
contribution from any party to the litigation, or any other person, for the cost18
of implementing the feasible plan. Any agreement granting indemnity or19
contribution to any such party admitting responsibility shall become null and20
void upon the filing of a qualified admission of responsibility.  Any party who21
accepts all or part of any payment of any legal or contractual indemnity22
obligation in violation of the provisions of this Paragraph shall be liable to the23
indemnitor for the return of such payment.  A qualified admission of24
responsibility and the resulting waiver of indemnity shall be limited to the25
extent of the qualified admission of responsibility. The waiver of indemnity shall26
not apply to indemnity against acts or omissions of the assignee or successor27
operator, occurring after any assignment, or for any damages beyond the28
jurisdiction of the department.29 SB NO. 760
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(2)  Nothing in this Section shall prohibit or invalidate any insurance1
agreement governed by the provisions of Title 22 of the Louisiana Revised2
Statutes of 1950.3
Section 2. The provisions of this Section shall not apply to any case in which the4
court on or before the effective date of this Act has issued or signed an order setting the case5
for trial, regardless of whether such trial setting is continued.6
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by J. W. Wiley.
DIGEST
Allain (SB 760)
Present law provides a procedure for the remediation of oilfield sites and exploration and
production sites and provides for definitions.
Proposed law provides that the definitions in present law shall apply to proposed law.
Proposed law provides that within 120 days of being served with a claim under present law
any party may make a qualified admission of responsibility to fund the most feasible plan
to evaluate or remediate all or a portion of the environmental damage to applicable
regulatory standards.
Proposed law provides that an admission will not be construed as an admission of liability
for damages pursuant to present law. Further provides that after the initial admission under
proposed law, an admission by any other party to the litigation must be made within 30 days
of the filing in the record of the first admission.
Proposed law provides that within 60 days of a qualified admission of responsibility as to
all or any portion of the environmental damage, and whether by one or more of the
defendants, a party admitting responsibility must file a plan of evaluation or remediation
with the DNR, office of conservation, together with all facts and data necessary to support
such plan.
Proposed law provides that any party may submit a plan, submittal or comment for
consideration by the department. Further requires the department within 60 days after the
filing of the plan of evaluation or remediation to approve the plan or structure a plan which
the department determines to be the most feasible plan to evaluate or remediate the
environmental damage to applicable regulatory standards.
Proposed law provides that no plan for evaluation or remediation of environmental damage
approved by the department will include an exception from any existing regulations as to
remediation of environmental media, unless such exception has been approved by certain
department heads.
Proposed law provides that the qualified admission of responsibility for implementing the
most feasible plan and the plan approved by the department will be admissible as evidence
in any action.
Proposed law requires the party admitting responsibility to deposit with the department
sufficient funds to cover the cost of the department's review of the plans or submittals
including the cost of holding a public hearing to approve or structure the feasible plan. SB NO. 760
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Further requires the initial payment to be in the amount of $100,000, and be deposited prior
to or along with the submission of the plan by the party admitting responsibility.
Proposed law provides that within 30 days of the department's filing of the plan, the party
admitting responsibility for implementing the most feasible plan must reimburse the plaintiff
for those costs which the court determines to be recoverable.
Proposed law provides that nothing in the proposed law will delay the prosecution or defense
of the action, including the conducting of discovery and pretrial motion practice.
Proposed law allows any party to subpoena, for purposes of deposition or trial, any
employee, contractor or representative of the department involved in the formulation of the
feasible plan approved by the department.
Proposed law provides that proposed law will not establish primary jurisdiction with the
DNR.
Proposed law requires any party admitting responsibility to waive any and all legal or
contractual rights to indemnity or contribution from any party to the litigation, or any other
person, for the cost of implementing the feasible plan. Further requires that any agreement
granting indemnity or contribution to any such party admitting responsibility will become
null and void upon the filing of a qualified admission of responsibility.
Proposed law provides that any party who accepts all or part of any payment of any legal or
contractual indemnity obligation in violation of proposed law will be liable to the indemnitor
for the return of such payment.
Proposed law provides that a qualified admission of responsibility and the resulting waiver
of indemnity will be limited to the extent of the qualified admission of responsibility. Further
provides that the waiver of indemnity will not apply to indemnity against acts or omissions
of the assignee or successor operator, occurring after any assignment, or for any damages
beyond the jurisdiction of the department.
Proposed law provides that nothing in proposed law will prohibit or invalidate any insurance
agreement governed by the provisions of Title 22 of the Louisiana Revised Statutes of 1950.
Provides that the provisions of proposed law will not apply to any case in which the court
on or before the effective date of proposed law has issued or signed an order setting the case
for trial, regardless of whether such trial setting is continued.
Effective August 1, 2012.
(Adds R.S. 30:29.2)